Commercial Property Loans Made Simple
Whether you are buying an office, retail shop, or industrial B1/B2, we help you secure the highest LTV and lowest interest rates from major banks in Singapore.
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Commercial Property Loan
Business owners should allow experience mortgage loan experts to work on their Commercial Property Loan. This is because business owners are always busy and overlooking on this portion will end up paying more interests to the banks. Commercial Property Loan is unlike home loans and the interest may raise up to 6% after lock-in periods.
However, all unnecessary paying to the interest can be avoided if you sign up the loan with someone reliable. Thereafter, the mortgage adviser should constantly keep an update with you to ensure you get the best package avail. Usually, Commercial Property Loans should be applied under the company’s registered name as not all banks provide loans to personal for such cases. We usually provide a cross comparison between both to see which secures a better interest package. Additionally, there can be a big interest difference for companies which buys commercial properties for just for investment.
Regardless which, it is important that the business go through a real estate loan guru. This shortens the process for loan comparison as businesses need to focus on their operations. Furthermore, the loan industry might be complex for many people and signing up on a wrong package will lead to destructive interest paying.
At the end of the day, our consultants will ensure you get the best out of the application. Numbers on an application only shows the surface of the loan package. Hence, only experienced mortgage loan gurus can help you plan out a long term hassle free low interest loan repayment.
Commercial Property Loan Singapore Guide (2025)
Securing a commercial property loan in Singapore is a major step for business owners and investors. Whether you plan to purchase an office, shop unit, or industrial property, choosing the right financing structure is essential.
At Singapore Home Services, we help buyers understand loan options clearly. We simplify the process and connect you with reliable lenders in Singapore.
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What Is a Commercial Property Loan in Singapore
A commercial property loan is financing used to purchase non-residential real estate. These properties include offices, retail shops, warehouses, factories, and industrial buildings.
Unlike HDB or private home loans, commercial loans focus on the financial strength of the business or investor. Banks also review the property’s income potential and long-term value.
Most commercial loans in Singapore offer tenures between 10 and 30 years, depending on the borrower profile.
Common commercial property buyers
- SME business owners purchasing office space
- Investors buying shop units for rental income
- Companies acquiring industrial facilities
- Entrepreneurs opening retail stores
Commercial Property Loan Overview
Understanding the main features of commercial property loans helps buyers plan more effectively. Therefore, this quick comparison table gives a useful starting point.
| Feature | Commercial Property Loan Singapore |
|---|---|
| Loan Tenure | 10 – 30 years |
| Financing Amount | Up to 70% – 80% of property value |
| Interest Rate | Around 3% – 6% depending on lender |
| Property Types | Office, retail, warehouse, factory |
| CPF Usage | Not allowed |
| Downpayment | Usually 20% – 30% cash |
| Applicant Type | Individual investor or company |
Because CPF cannot be used, buyers should prepare sufficient cash reserves before applying.
Types of Commercial Loans in Singapore
Different loan structures support different business goals. As a result, choosing the right financing type matters.
Owner-Occupied Commercial Loan
Businesses buying property for their own operations typically use this structure. For example, this may include office units, warehouses, or industrial space.
Owner-occupied loans may sometimes offer slightly better terms because the business uses the property directly.
Commercial Investment Loan
Investors buying commercial property for rental income usually choose this option. Typical examples include retail shop units, strata offices, and commercial shophouses.
SME Commercial Property Loan
Some banks offer dedicated packages for small and medium enterprises. These may include more tailored repayment structures or business-focused support.
Commercial Loan Interest Rates in Singapore (2025)
Interest rates for commercial loan Singapore packages vary with market conditions. In 2025, many lenders offer rates between 3% and 6%.
Rates usually depend on the borrower’s profile, loan size, property type, and market trends.
| Lender Type | Estimated Interest Rate |
|---|---|
| Local Banks | 3.2% – 4.5% |
| Private Banks | 3.5% – 5% |
| Alternative Lenders | 4% – 6% |
Because rates differ significantly, comparing loan packages remains essential.
Eligibility for Commercial Property Loans
Commercial loan approval depends on both financial strength and property valuation. Therefore, banks usually review several areas before approval.
What lenders review
- Company financial statements
- Director’s credit history
- Existing loan obligations
- Property valuation report
- Business revenue stability
Common documents required
- ACRA company profile
- Latest financial statements
- Director NRIC or identification
- Property purchase agreement
Estimated Commercial Loan Repayment Example
Understanding repayments helps buyers avoid financial strain later. The table below shows simplified examples for quick reference.
| Property Price | Loan Amount | Interest Rate | Estimated Monthly Repayment |
|---|---|---|---|
| S$1,000,000 | S$700,000 | 3.5% | ~S$3,500 |
| S$1,500,000 | S$1,050,000 | 3.8% | ~S$4,900 |
| S$2,000,000 | S$1,400,000 | 4% | ~S$6,700 |
Example only. Actual repayments vary by lender package, tenure, and loan structure.
Benefits of Commercial Property Ownership
Long-Term Business Stability
Owning commercial property protects businesses from rising rental costs. Consequently, operations can be planned with more confidence.
Rental Income Opportunities
Commercial property investors often enjoy higher yields than residential properties. In Singapore, yields commonly range between 5% and 10% annually.
Asset Appreciation
Commercial properties in strong locations may appreciate over time. As a result, owners can build long-term wealth while supporting business growth.
How to Apply for a Commercial Loan in Singapore
Applying for a commercial property loan Singapore package is easier when approached step by step.
- Determine your property budget and financing needs
- Compare commercial loan packages from different lenders
- Submit financial documents for loan assessment
- Receive in-principle loan approval
- Complete valuation and legal checks
- Finalise the loan agreement and disbursement
Why Work with Singapore Home Services
Choosing the right loan can save thousands in interest payments over time. Therefore, expert comparison matters.
At Singapore Home Services, we help buyers connect with reliable lenders and mortgage advisors. Our partners support loan eligibility checks, package comparisons, and repayment planning.
Frequently Asked Questions
What is the maximum commercial property loan in Singapore?
Most banks finance around 70% to 80% of the property value, depending on the borrower profile.
Can foreigners apply for commercial property loans?
Yes. Foreign investors may apply, although terms and approval criteria may differ.
Can CPF be used for commercial property loans?
No. CPF funds cannot be used for commercial property purchases.
What is the minimum downpayment for commercial property?
Buyers usually need a 20% to 30% cash downpayment.
Can commercial property loans be refinanced?
Yes. Many borrowers refinance when market rates become more favourable.